Despite The Slowdown In The Market, Apple Will Make The Same Number Of Iphones As Last Year
In spite of the slowdown of the smartphone market, Apple expects to assemble 220 million iPhones in 2022, which is roughly the same number as last year.
Apple, the world’s largest smartphone maker, has been asking suppliers to build at least as many of its next-generation iPhones this year as they did in 2021, relying on an affluent clientele and dwindling competition to weather a global electronics downturn.
The tech giant is telling its assemblers to produce 90 million of its new devices next year, on the same level as last year, despite deteriorating projections for the smartphone market, according to people with knowledge of the matter.
It is estimated by one of the people who spoke with us that the Cupertino, California-based company will be able to assemble roughly 220 million iPhones in total for 2022, about the same number as last year.
Despite The Slowdown In The Market, Apple Will Make The Same Number Of Iphones As Last Year
It appears that Apple’s projections, a closely guarded secret, indicate that the company is confident about being able to weather a slump in spending on smartphones and other devices in the near term.
There has been a freeze on orders from mobile device makers, China’s largest chipmaker warned on Friday.
According to a report from IDC, the global handset market, which shrank by 9% during the June quarter, is expected to shrink by 3.5% by 2022.
As a result of this news, Apple suppliers in Asia saw their shares rise. The Taiwanese iPhone assembler Pegatron Corp. has risen by as much as 3.6% in its biggest gain in five weeks, while Japan Display Inc.
has logged its largest rise in two months of 5%. There was a 5.3% rise in TDK Corp. and a 3.7% rise in Murata Manufacturing Co.
At a time when Android devices are suffering, the strong demand for Apple’s new lineup stems from a customer base still willing to spend on premium gadgets at a time when Android devices are suffering, people said.
As a result of Huawei Technologies Co.’s virtual demise, there has also been an erosion in the level of competition in high-end smartphones.
As a result, Hon Hai Precision Industry Co., which assembles most of the world’s iPhones, hinted at Apple’s resilience this week when it said that sales of its smart consumer electronics products are expected to remain relatively stable in the coming years.
Apple’s representative declined to comment on the matter.
As economic and geopolitical uncertainty clouds the outlook for 2022 and beyond, the world’s most valuable company has promised to be disciplined about spending in the years ahead.
It was reported last month by Bloomberg that Apple plans to reduce spending and hiring across some of its teams by the year 2023.
Earlier this week, US inflation data came in lower than expected, giving rise to hope that interest rate hikes will not be as aggressive as initially anticipated.
However, market observers cautioned that the outlook for the economy remains bleak. Apple continues to forge ahead with its plans for its marquee device despite the fact that it accounts for about half of the company’s revenue and is the main gateway to the profitable services that the company offers.
In a report by Bloomberg News, Apple is expected to unveil four new iPhone models in 2022 that are intended to break ground in comparison with the versions that were launched in 2021.
As part of the new iPhone 14 models, Apple is also expected to include a considerably improved front-facing camera, a new rear-camera system with a 48-megapixel sensor, thinner bezels, a faster A16 chip, and a redesigned notch with a pill-shaped cutout for Face ID and a hole punch for the camera.
It is important to note that Apple’s latest sales exceeded expectations despite the fact that they decelerated
Before the year 2021, Apple had maintained a consistent level of around 75 million units for the initial run of a new device through the end of the year in recent years, regardless of the initial run size.
The company has increased its target for 2021 to 90 million units, anticipating that the first new iPhone released since the rollout of C-19 vaccines would result in an increase in demand.
During that fiscal year, the company, whose iPhone assemblers include Pegatron Corp., reached record sales and profit levels.
This year, Apple’s growth is likely to be driven once again by the iPhone. Apple’s iPhone and iPad both performed better than expected during the June quarter, even though other products – such as Macs and wearables – fell short of expectations during the quarter.
A key growth area for Apple, services, narrowly missed estimates in the quarter.
According to Piper Sandler analysts, Apple seems to be experiencing no meaningful impact on its iPhone business in the current macroeconomic environment at the moment.